NEW DELHI: The Finance Ministry will monitor the transition process of removing Rs 500 and Rs 1000 currency from the circulation and introduction of new Rs 500 and Rs 2000 notes. “Control room will be set up in RBI and Finance Ministry to monitor situation,” said Shaktikanta Das, Secretary Department of economic Affairs.
New notes of Rs 500 and Rs 2000 with greater security features and design will be circulated from November 10. Das also informed Rs 500 notes circulation is up 76 per cent from 2011 to 2016 and Rs 1000 notes by 109 per cent as against 40 per cent rise in all currency notes.
Urjit Patel, Reserve Bank of India (RBI) addressing a press conference after speech by the Prime Minister Narendra Modi, highlighted that RBI had been working on the expected demand for the new currency notes. “The new notes will be released in phased manner,” said Urjit Patel, RBI. The new currency notes have strong security features and will act as a major deterrent for those for copying the notes.
The industry was appreciative of the move with caution. “This is an extremely bold move by the Prime Minister and will have a debilitating impact on the parallel economy in the country as well as deal a body blow to terror financing,” said Harshavardhan Neotia, President, FICCI. He added there could be some inconvenience for a few days.
“However, we are sure that government and RBI will take adequate measures to ensure the transition happens smoothly”, he said. “Demonetizing high denomination notes can be an effective means of checking accumulation of wealth in cash. The government has taken a measure aimed at the heart of the black cash economy,” Dr Naushad Forbes, President, CII said.